General information, not legal advice. This answer was written by the PhilippineLaws team from the law it cites and checked for accuracy to the best of our knowledge, last on Sep 29, 2026. It has not been reviewed by a lawyer. Read the cited law yourself, and for your own situation talk to a lawyer or the Public Attorney’s Office (PAO).
How much can a landlord increase rent each year in the Philippines?
Under Republic Act No. 9653 (the Rent Control Act) and DHSUD regulations, rent for covered residential units cannot be raised beyond the statutory annual ceiling (typically 4% to 7% for continuing tenants). Landlords are also strictly forbidden from demanding more than one month advance rent and two months security deposit.
Illustrated Legal Brief
Full Plate| Situation | Rate |
|---|---|
| Maximum advance rentCannot be required beyond the first 30 days of occupancy | 1 month |
| Maximum security depositHeld in trust; returned minus unpaid utility bills and proven repairs | 2 months |
| Annual rent increase cap (covered units)Fixed by DHSUD/NHSB annually for continuing residential tenants | 4% – 7% |
Under RA 9653 Sec. 7, demanding excess deposit or exceeding the annual rate hike carries fines up to ₱50,000.
Why
Republic Act No. 9653 (the Rent Control Act of 2009) and successive resolutions of the National Human Settlements Board (NHSB) under the Department of Human Settlements and Urban Development (DHSUD) regulate residential leases. Covered units include apartments, boarding houses, and rooms where monthly rent does not exceed ₱10,000 in the National Capital Region and other highly urbanized cities, and up to ₱5,000 in all other areas.
For covered units occupied by the same continuing tenant, landlords cannot arbitrarily hike the rent. The statutory ceiling on annual rental increases is set by DHSUD guidelines—historically capped between 4% and 7% per year depending on the monthly rent bracket. A landlord cannot demand a sudden 20% or 50% rental hike simply because market rates went up in the neighborhood.
Advance rent and security deposits are strictly regulated under Section 7 of RA 9653. Landlords are prohibited from demanding more than one (1) month advance rent and more than two (2) months security deposit. Any advance rent must be credited to the initial months of occupancy. The security deposit must be kept in an interest-bearing bank account in trust for the tenant, and must be returned upon the lease's expiration after deducting unpaid utility bills or actual repair costs for tenant damage.
When a tenant voluntarily vacates or is lawfully ejected, the landlord may set a new initial rental rate with the new tenant. However, once that new lease starts, future rent increases become subject to the annual statutory percentage cap.
A landlord who violates RA 9653 faces criminal liability under Section 12, including a fine ranging from ₱25,000 to ₱50,000, imprisonment of one month and one day to six months, or both.
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